Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

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Post-employment benefit provisions
Key Figures Group Notes OC Oerlikon Corporation AG, Pfäffikon
Notes to the consolidated financial statements
in CHF million 2011 2010
Plan assets at market value at January 1 682 730
Expected return on plan assets 32 34
Employee contributions 10 9
Employer contributions 20 19
Actuarial losses (–)/gains (+) –28 7
Curtailments/settlements – –20
Amounts paid out –42 –61
Changes in the scope of consolidated companies – –
Conversion differences –1 –36
Plan assets at market value at December 31 673 682
Present value of projected benefit obligation (PBO) at January 1 1 158 1 215
Service cost 33 33
Interest cost 43 53
Plan curtailments – –20
Actuarial losses 28 94
Amounts paid out –68 –92
Changes in the scope of consolidated companies –5 –
Conversion differences –5 –125
Present value of projected benefit obligation (PBO) at December 31 1 184 1 158
Pension cost – defined benefit plans
Current service cost –33 –33
Employee contributions 10 9
Current service cost after deduction of employee contributions –23 –24
Interest cost –43 –53
Expected return on plan assets 32 34
Gains from terminations and curtailments – 1
Total pension cost – defined benefit plans –34 –42
Assumptions used in actuarial calculations 2011 2010
(weighted average rates)
Discount rate 3.9 % 3.9 %
Salary progression 2.1 % 1.8 %
Benefit progression 0.7 % 0.8 %
Return on plan assets 4.3 % 3.8 %
The expected return on funded plan assets is based on the long-term historical performance of the separate categories of plan assets
for each funded pension plan.The calculation includes assumptions concerning expected income and realized or unrealized gains on
plan assets. The expected return on plan assets included in the income statement is calculated by multiplying the expected rate of return
by the fair value of plan assets.The difference between the expected return and the actual return in any twelve month period is an actuarial
gain/loss and is recorded directly in other comprehensive income. In 2011, the actual return on plan assets was CHF 4 million
(previous year: CHF 41 million).
Actuarial losses recognized in other comprehensive income
in CHF million 2011 2010
Accumulated values at January 1 97 35
Actuarial losses recognized during year 47 62
Accumulated values at December 31 144 97
Effect of capitalization limit IAS 19.58(b) –9 –29
The employer contributions for 2012 are expected to be approximately CHF 27 million (previous year: CHF 21 million).
Note 13 (cont.)